frontier capital management

New Model Advisor4 Pillars of Investing

Expanding the Frontier of Investment Opportunities TM

Frontier Capital Management LLP

Berkeley Square House, 8th Floor, Berkeley Square, Mayfair, London W1J 6DB

Telephone +44(0)20 7317 6900 Fax +44(0)20 7317 6901 www.FrontierCM.comRegulated by the Financial Services Authority Registered in England no. OC308325

Frontier Capital Management LLPFrontier Capital Management LLP2

Frontier Capital OverviewFrontier Capital Overview1. Frontier founded in 2004 to deliver a passive multi asset class

“Endowment Style” fund to the wealth management market

2. Multi Asset Platform (MAP) funds launched in 2005: 4+ year trackrecord and approximately $550 million AUM

3. 17 Partners/employees, FSA Authorised investment manager

4. Frontier works with a select group of wealth managers, charitiesand institutions providing a core multi asset investment solution

5. Frontier private label with National Bank of Kuwait 2008

6. Frontier selected as core solution for BlueFin and Succession 2009

7. Frontier focus is on education with a large commitment of resources to monthly workshops/seminars in/out of house

8. March 2009 launch of onshore MAP Balanced fund

9. April 2009 launch of Global Hedge: Hedge fund index tracker


FrontierFrontier’’s Investment Philosophys Investment Philosophy4 Pillars of Investing or Evidence Based Investing

1. Traditional and Alternative asset classes will generate a return above inflation (real return) in the medium to long term (5 to 10 years)

2. The Strategic Asset Allocation of a portfolio will determine the vast majority of the portfolio’s return and risk. Market timing and tactical asset allocation changes are unlikely to add value but will add cost.

3. Modern Portfolio Theory: Diversification across a portfolio of asset classes reduces risk and increases risk adjusted returns

4. Low cost index investing outperforms the majority of actively managed investments and outperformance increases with time

These investment principles are still sound - even in times of market crisis.


Historical Return and Historical Return and Risk AnalysisRisk Analysis


Risky Assets Generate Long Run Risky Assets Generate Long Run ““Real ReturnsReal Returns””

0%

2%

4%

6%

8%

10%

12%

14%

5.2%

7.1%

8.5%

12.4%

6.9%

2.8%

6.2%

8.4% 8.4%

Inflation = 2.2%

Global Equities

Global Fixed

Income

Emerging Equities

Emerging Bonds

Global Real

Estate

Commo-dities

Hedge Funds

Managed Futures

8 Asset Class

Multi Asset Portfolios are equally weighted and rebalanced annually. Returns are GBP hedged. Accompanying notes are an integral part of this presentation.

• Historical returns have been significantly higher than inflation

• The return above cash is known as the “Excess Return”

Asset Class Returns Above InflationAsset Class Returns Above InflationJanuary 1973 to December 2008January 1973 to December 2008

Asset Class Returns Above InflationAsset Class Returns Above InflationJanuary 1991 to December 2008January 1991 to December 2008

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

7.3%

6.5%

3.8%

7.3%8.1%

UK Equities

UK Bonds

UK Real Estate

Commo-dities

4 Asset Class Portfolio

Inflation = 4.5%


Probability of Return Capture Increases with TimeProbability of Return Capture Increases with Time

Accompanying notes are an integral part of this presentation.

Approximately 70% of periods produce returns above cash

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Dec-73 Dec-76 Dec-79 Dec-82 Dec-85 Dec-88 Dec-91 Dec-94 Dec-97 Dec-00 Dec-03 Dec-06

Rolling 1 Year Annualised Returns: c. 70% of periods above cash

CashInflation4 Asset Class Portfolio8 Asset Class Portfolio





-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Dec-75 Dec-78 Dec-81 Dec-84 Dec-87 Dec-90 Dec-93 Dec-96 Dec-99 Dec-02 Dec-05 Dec-08

Rolling 3 Year Annualised Returns: 85% of periods above cash


Frontier Capital Management LLPFrontier Capital Management LLP

0%

5%

10%

15%

20%

25%

30%

Dec-77 Dec-80 Dec-83 Dec-86 Dec-89 Dec-92 Dec-95 Dec-98 Dec-01 Dec-04 Dec-07

Rolling 5 Year Annualised Returns: over 95% of periods above cash


8







Worst 10 year holding period produced 4% per year above cash

0%

5%

10%

15%

20%

25%

Dec-84 Dec-86 Dec-88 Dec-90 Dec-92 Dec-94 Dec-96 Dec-98 Dec-00 Dec-02 Dec-04 Dec-06 Dec-08

Rolling 10 Year Annualised Returns: 100% of periods above cashWorst 10 year return 4.0% p.a. above cash (8 Asset Class)





For investors with 10 year or longer time horizons, risk is reduced

Multi asset portfolios have generated 5.2% per year more than cash

Table 1: Multi Asset Class Portfolio Performance

4 ASSET CLASS PORTFOLIO

8 ASSET CLASS PORTFOLIO

Jan 73 to Dec 08 Jan 91 to Dec 08

Ann. Return 11.9% 10.6%Ann. Volatility 10.4% 8.4%

Return / Volatility 1.1 1.3

1 Year Rolling % > Cash 67% 76%






Strategic Asset Strategic Asset Allocation Allocation


4.60%

1.80%2.10%

91.50%

Asset Allocation Individual Investment Selection Other Market Timing

Brinson, Hood, Brinson, Hood, BeebowerBeebower, Journal of Finance,1986, Journal of Finance,1986

Strategic Asset Allocation as a Portfolio DriverStrategic Asset Allocation as a Portfolio Driver

Source: Brinson, Hood, Beebower, Journal of Finance, November 1987


Measure Brinson (1986)

Brinson (1991)

Ibbotson - Mutual

Ibbotson - Pension

Percentage 93.6% 91.5% 81.4% 88.0%Active Return -1.10 -0.08 -0.27 -0.44

Percentage of Return Explained by Asset Allocation

•When a portfolio contains more than one Asset Class (i.e. Equities and Bonds), the performance of the Asset Classes determines the majority of the return of the portfolio•Therefore, ASSET CLASS selection and weight is the SINGLE MOST IMPORTANT driver of multiple Asset Class portfolio returns

Strategic Asset Allocation as a Portfolio DriverStrategic Asset Allocation as a Portfolio Driver


• “Institutional investors may be devoting insufficient resources to Asset Allocation which may contribute the majority of their investment performance.” Myners Report, March 2001

• “For the individual investor, the asset allocation decision is by far the most important factor in determining returns.” Sandler Report, July 2002

UK Asset management IndustryUK Asset management Industry


Extreme Variability of Asset Class PerformanceExtreme Variability of Asset Class Performance

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

60% 11% 75% 5% 27% 39% 24% 22% 66% 50% 10% 32% 56% 30% 34% 37% 39% 17%

39% 11% 44% -1% 21% 34% 17% 11% 41% 20% 7% 14% 31% 26% 26% 32% 25% 8%

20% 9% 25% -2% 20% 29% 15% 8% 29% 16% 3% 11% 29% 17% 16% 17% 9% -10%

16% 8% 22% -4% 18% 18% 13% -6% 26% 11% 2% 9% 24% 12% 12% 10% 8% -22%

14% 7% 20% -4% 14% 17% 11% -11% 25% 5% -1% 6% 21% 11% 12% 9% 6% -38%

13% 4% 19% -6% 11% 13% 9% -14% 3% 3% -3% 0% 12% 6% 6% 5% 6% -39%

13% 2% 12% -7% 10% 8% -12% -25% 1% -8% -14% -6% 11% 5% 5% 3% 6% -45%

-6% -4% -12% -19% -5% 6% -14% -36% -4% -31% -32% -25% 3% 3% 4% -15% -16% -53%

For example, Emerging Equities were the top performing asset class 1991-1993, then consistently bottom (with the exception of 1999) to 2002. This asset class was again a top performer 2003-2007 followed by a loss of more than 50% in 2008.

Accompanying notes are an integral part of this presentation. Returns are in USD.

BestBest

WorstWorst

Managed FuturesReal Estate Commodities Hedge FundsGlobal Equities Global Bonds Emerging Equities Emerging Bonds

Not possible to consistently forecast asset class winners / losers and frequent tactical changes increase cost / risk


• Definition: A market timer attempts to opportunistically move into and out of different asset classes in order to increase returns i.e. moving out of stocks and into bonds during a bear market

• David Dreman study of “expert” market strategists going back to 1929

• Results indicated that the consensus was WRONG 77% of the time

• Graham and Campbell study of 237 “market timing” newsletters

• Less than 25% of recommendations were correct (less than the random 50% achievable by throwing darts)

• No advisors were consistently correct (no persistence)

• The only consistency found was for the worst advisors who were wrong very often

• Malcolm Forbes: “The only money made in the investment newsletter business is in the subscription fees – not in the advice”

Market Timing/Tactical Asset AllocationMarket Timing/Tactical Asset Allocation


Markets Create WealthMarkets Create Wealth

• Markets create wealth (risk premium)

• Market timing destroys wealth(mostly)

• Inflation erodes wealth

• Fees and costs erode wealth

• Help clients to “Stay the Course”


Modern Portfolio TheoryModern Portfolio Theory


PORTFOLIO 1 PORTFOLIO 2 PORTFOLIO 3 PORTFOLIO 4 PORTFOLIO 5 PORTFOLIO 6Global Equities 100% 60% 50% 40% 30% 25%Global Fixed Income 30% 30% 30% 30% 25%Global Real Estate 10% 10% 10% 10% 10%Commodities 10% 10% 10% 10%Emerging Equities 5% 5% 5%Emerging Bonds 5% 5% 5%Hedge Funds 10% 10%Managed Futures 10%TOTAL 100% 100% 100% 100% 100% 100%

Annualised Return 7.4% 8.7% 8.8% 9.5% 9.5% 9.8%Volatility (Ann Std Deviation) 13.8% 9.0% 8.2% 8.3% 7.5% 7.0%Maximum Loss -44.3% -27.8% -26.9% -26.6% -24.5% -21.2%Avg Top 3 Maximum Losses -40.1% -26.2% -25.7% -25.0% -23.0% -19.8%Return/Volatility Ratio 0.54 0.97 1.07 1.15 1.27 1.40Return/Maximum Loss Ratio 0.17 0.31 0.33 0.36 0.39 0.46

Return/Top 3 Maximum Losses 0.18 0.33 0.34 0.38 0.41 0.49

19

Combining asset classes with variable correlations increases returns and significantly decreases risk (maximum loss)

Benefits of Modern Portfolio Theory (January 1991 – December 2008)

Multi Asset Investing improves riskMulti Asset Investing improves risk--adjusted returnsadjusted returns

Returns above use major benchmark indices for each asset class and assume annual rebalancing. Accompanying notes are an integral part of this presentation. Returns are hedged into GBP.


Hedge Funds / Managed Futures Hedge Funds / Managed Futures vsvs EquitiesEquities

PeriodGlobal Equities

Hedge Funds

Managed Futures

Nov -07 to Feb-09 -50.4% -22.7% +13.6%

Sep-00 to Mar-03 -46.0% 0.0% +29.2%

Jan-90 to Sep-90 -28.0% +14.7% +24.2%

Sept-87 to Nov -87 -20.5% -8.0% +8.2%

Dec-80 to July-82 -19.3% na +16.7%


Theory Into Practice: Theory Into Practice: The Super EndowmentsThe Super Endowments


Innovative Multi Asset PortfoliosInnovative Multi Asset Portfolios

Multi asset portfolios with high historical risk adjusted returns

Source: NACUBO 2005; Annual reports (various); Frontier Capital Management. Accompanying notes are an integral part of this presentation.

Top 5 Endowments (Assets > $10bn)Top 5 Endowments (Assets > $10bn)

24%

8%

10%

1%9%

10%

25%

16%

-2%Global Equities

Global Fixed Income

Emerging Equities

Emerging Bonds

Real Estate

Commodities

Hedge Funds

Private Equity

Cash


Innovative Portfolios & Exceptional ReturnsInnovative Portfolios & Exceptional Returns

• Innovative portfolios with exposure to multiple asset classes

• Significantly higher returns than traditional equity/bond portfolios

• Allocations to alternative assets boost performance

Total Alternative 2007/08 Return 10yr Annualised Return

Equity / Bond Portfolio 0.0% -5.1% 3.4%

Average Endowment 23.6% -3.0% 6.5%Greater than $1bn 53.5% 0.6% 9.5%Top 5 Endowments 64.4% 4.4% 13.7%


Large Endowments: Stable Asset AllocationsLarge Endowments: Stable Asset Allocations

• Top 5 Endowments average annual change only 7% pa

• Implementation lags do not have a significant impact on performance

Top 5 Average Asset AllocationTop 5 Average Asset Allocation

Estimated average asset allocation of the top 5 endowments is calculated by Frontier. The lagged impact of returns uses Frontier asset benchmark indices and the estimated average asset allocation of the Top 5 endowments. Accompanying notes are an integral part of this presentation.

0

0

0

1

1

1

1

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Cash

Global Equities

Global Bonds Equities

Emerging BondsCommodities

Real Estate

Hedge Funds

Private Equity

Emerging


Active ManagementActive ManagementVsVs

Index InvestingIndex Investing


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3

European Funds U.S. Funds Emerging Mkt Funds

12.5%

76%72%

87%

78%

88%

3 years 5 years 10 years

75%

85% 87%

Percentage of Active Funds Underperforming The Index

Source: Lipper, MSCI, S&P, The Vanguard Group

Active UnderperformanceActive Underperformance


Index Investing Minimises Hidden CostIndex Investing Minimises Hidden Cost• Active management costs are significantly higher than index

investing costs

• Visible “Above Water”– Management Fees

Significantly higher vs indexing

• Hidden “Below Water”– Trading Commissions

Active funds higher turnover than buy & hold indexing

– Bid / Ask Spread

Price to buy, another to sell

– Market Impact Costs

Larger buy/sell orders affect price

Total Cost IcebergTotal Cost Iceberg


“Most investors will find the best way to own equities is through an index fund that charges minimal fees. They are sure to beat the net results (after fees and expenses) delivered by the majority of investment professionals.”

Warren Buffett, 1997

QuotesQuotes

“Most people think they can find managers who can outperform … I would say that 85 to 90 percent of [active] managers fail to match their benchmarks.”

Jack Meyer, former President, Harvard University Endowment Fund, 2004

“Most of the mutual fund investments I have are in index funds.”

Charles Schwab, pioneer of online brokerage, 1998


FrontierFrontier’’s Investment Philosophys Investment PhilosophyPillar One

Traditional and Alternative asset classes will generate a returnabove inflation and cash over the medium term (5 to 10 years)

• The return is embedded in the asset class itself and therefore afund manager is not necessarily required (ETF or tracker)

• Historical returns of multi-asset portfolios have averaged approximately 8% per year above inflation before costs

• Most wealth managers target inflation plus 2%-6% per annum. Therefore, asset classes have historically delivered everything needed for clients to achieve their goals

• Portfolios have experienced negative yearly returns 25% of the time but as the time horizon increases, the probability of positive returns increases dramatically

• Based on history, clients with a 5 to 10 year time horizon have a high probability of achieving a return above cash and inflation


FrontierFrontier’’s Investment Philosophys Investment PhilosophyPillar Two

The Strategic Asset Allocation of a portfolio will determine thevast majority of the portfolio’s return and risk.

• The impact of manager selection and short term market timing or tactical asset allocation changes is likely to be negligible over time and could be negative

• Managers within an asset class will rise and fall with the performance of the asset class with only small deviations

• It is not possible to consistently forecast the future direction and turning points of major asset classes

• Behavioural responses to bull and bear markets can precipitate poor investment decisions that severely impact returns

• An important role of the professional financial advisor is to educate clients and help them to “stay the course”


FrontierFrontier’’s Investment Philosophys Investment PhilosophyPillar Three

Modern Portfolio Theory: Diversification across a portfolio of asset classes reduces risk and increases risk adjusted returns

• Nobel Prize winning idea still valid after more than 50 years

• Key point is to build globally diversified portfolios of asset classes with different correlations

• Inclusion of alternative asset classes very important

• 2008 liquidity crunch meant almost all asset classes fell and diversification did not work as well as many expected but has worked better in 4 of 5 major bear markets over 30 years

• Large university endowments have been leaders in multi asset investing for two decades and have re-affirmed their commitment to this strategy going forward


FrontierFrontier’’s Investment Philosophys Investment PhilosophyPillar Four

Low cost index investing outperforms the majority of actively managed investments and outperformance increases with time

• Simple logic means the total return of all active portfolios must equal the market return, minus the costs of active management

• Active management costs are higher than indexing particularly “below the waterline” commissions, spreads, impact costs

• Approximately one third of managers outperform the index each year but this drops to only 10% over ten years or longer

• The best managers from the past do not repeat. Manager turnover is high and switching funds is expensive

• The negative impact of selecting the wrong fund can be large

• Can a Financial Advisor add value here when full time professionals fail? Is this the best value added for your time?

Multi Asset Platform Fund

Expanding the Frontier of Investment Opportunities TM

Frontier Capital Management LLP

Berkeley Square House, 8th Floor, Berkeley Square, Mayfair, London W1J 6DB

Telephone +44(0)20 7317 6900 Fax +44(0)20 7317 6901 www.FrontierCM.comRegulated by the Financial Services Authority Registered in England no. OC308325


Summary Summary -- Multi Asset Platform (MAP)Multi Asset Platform (MAP)• Asset Allocation fund inspired by the US Endowment Funds

– Access to 8 asset classes in a single fund, traditional and alternative

• Seven asset classes accessed through low cost Index Investing– Asset classes accessed directly for lower cost, no use of ETFs

• Hedge Funds accessed via unique low cost tracker fund– Diversified across 70+ single hedge funds plus synthetic replication

• Two funds create a platform for varying risk tolerance/time horizon

– Conservative Fund: no leverage, 5 year time horizon

– Moderate Fund: 100% leverage, 10 year time horizon

• Exceptional transparency, liquidity and cost efficiency

– Liquidity twice monthly, 5 days notice, no lock ups, onshore fund daily

– Flat management fee 0.75%; No performance fee



15%

18%

5%5%

10%10%

25%

12%Global Equities 15%

Global Fixed Income 18%

Emerging Equities 5%

Emerging Bonds 5%

Global Real Estate 10%

Commodities 10%

Hedge Funds 25%

Managed Futures 12%

35

Asset Allocation Inspired by Endowments Asset Allocation Inspired by Endowments

UniversityUniversityEndowmentsEndowments

Quantitative Quantitative AnalysisAnalysis

Frontier Frontier ExperienceExperience


2009 Asset Allocation2009 Asset Allocation

• Strategic allocation, annually rebalanced, private equity excluded

• Allocation reflects Frontier’s time horizon and volatility target of 5-7%


Traditional Asset ClassesTraditional Asset Classes

• Global EquitiesMSCI World Equities (Currency Hedged)

23 countries, 1894 equities

• Global Fixed IncomeBarclays Global Aggregate Bond (Currency Hedged)

35 countries, 12,105 bonds

• Emerging EquitiesMSCI Emerging Market Equities

25 countries, 854 equities

• Emerging BondsJP Morgan Emerging Market Bonds

33 countries, 145 bonds

Alternative Asset ClassesAlternative Asset Classes

• Global Real EstateDow Jones Wilshire Global (Currency Hedged)

27 countries, 238 securities

• CommoditiesS&P GSCI Light Energy Index

5 Sectors

24 Commodities

• Hedge FundsGlobal Hedge Index Fund

70+ Single Hedge Funds plus liquid replication

• Managed FuturesFund of Funds

50+ Commodity Trading Advisors (CTAs)

One Fund One Fund …… Eight Asset ClassesEight Asset Classes


Index Investing = Lowest CostsIndex Investing = Lowest Costs• Fee and cost savings are both above and below the waterline

– MAP Management fee lower than other active multi asset funds

– MAP indexing produces large “below waterline” savings vs. active funds

Frontier total cost savings based on Benchmark Asset Allocation weights and published research on cost savings across asset classes.

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

2.20%

2.40%

2.3%

0.44%

0.16%

0.45%

0.22%

0.40% 0.40%

0.19%

0.05%

MAP "Below Waterline"

Savings

Commo-dities

Real Estate

Emerging Bonds

Emerging Equities

Global Bonds

Global Equities

Hedge Funds Managed

Futures

MAP Savings:

Management Fees

Trading Commissions

Bid/Ask Spread Cost

Market Impact Cost


Index Investing = Lowest CostsIndex Investing = Lowest Costs• Fee and cost savings are both above and below the waterline• 2.3% saving generates significant difference in compounded returns over time

Frontier total cost savings based on Benchmark Asset Allocation weights and published research on cost savings across asset classes.

0 60 120 180 240 300 360 4205yrs 25yrs20yrs15yrs10yrs

4.4 million

2.2 million

2.2 million

Low Cost Portfolio

High Cost Portfolio

Value of Initial 250,000 Investment (10% growth pa)

30yrs

2.3% Annual Savings


Summary Summary –– Multi Asset Platform (MAP)Multi Asset Platform (MAP)• One fund, 8 asset classes, 15000+ securities*, ideal core investment

• Multi asset approach at very low cost

• Disciplined asset allocation with rebalancing & currency hedging

• Optimised portfolios using leverage for varying risk profiles

• Excellent liquidity and transparency

CoreCoreFrontier

Conservative(No leverage)

Core Core

Frontier Moderate (100% leverage)

Low RiskLow Risk Moderate RiskModerate Risk Higher RiskHigher Risk

Frontier Moderate (100% leverage)

Satellite Investments

in Gold, Equities, Private

Equity, etc…

Core Core

* This number represents the number of the securities within the reference asset class indices to which the Fund accesses the returns.


Frontier Capital Strategic PartnershipsFrontier Capital Strategic Partnerships• Frontier want to provide an extremely high level of service to a

small number of “Strategic Partners” (100)

• Common understanding of how capital markets function

• Frontier focus on education: research available on 4 Pillars

• 4 Pillars and Hedge Fund Masterclass held every month

• Strategic status means helping you to simplify and systemise your investment offering and build your business

• Outsourced one stop investment solution

• Internal educational presentations

• Development of your own Investment Policy

• Jointly sponsored client days: “bring a friend”

• Frontier Engagement Process: Mutual due diligence


Website: www. FrontierCM.comEmail: [email protected]

Contact DetailsLondonBerkeley Square HouseBerkeley SquareMayfair, LondonW1J 6DBUnited Kingdom

Michael Azlen (CEO)Colin Hodges (COO)Telephone: +44 (0) 207 317 6900Facsimile: +44 (0) 207 317 6901 [email protected]@FrontierCM.com

Bruce GascoinePartner,Business DevelopmentTelephone: +44 (0) 20 7317 6908Mobile: +44 (0) 776 0263 [email protected]

Andrew CracknellPartner, Business DevelopmentTelephone: +44 (0) 152 783 9747 Mobile: +44 (0) 781 0484 [email protected]

Jo NhanBusiness DevelopmentManagerTelephone: +44 (0) 207 317 6923Mobile: +44 (0) 779 2525 [email protected]


MAP Funds Available From:MAP Funds Available From:

www.standardlife.com

www.canadalifeint.com

www.fpinternational.com

www.winterthur-life.co.uk

www.spila.com

www.axa-iom.co.im

Life CompaniesSIPP Providers

www.sippdeal.co.uk

www.jameshay.co.uk

www.hornbuckle.co.uk

Platforms

www.transact-online.co.uk

www.ascentric.co.uk

www.nucleusfinancial.com

www.raymondjames.co.uk


Notes & DisclaimerNotes & Disclaimer1. The Frontier Multi Asset Platform Funds were invested on September 2nd, 2005. Prior data is pro-forma and has been calculated from the original asset

allocation weights applied to the original Indices and rebalanced annually at December 31 each year. Pro-forma performance is net of 50 basis points per annum to take into account index replication costs, currency hedging and annual rebalancing costs. Performance data from September 2005 to October 2006 inclusive is based on actual fund NAVs restated to reflect current fee levels. The Plus fund was invested in July 2006.

2. While Frontier has developed methods of preparing pro-forma returns that it believes to be reasonable, fair and complete, there can be no assurances that the results derived from such methods are correct, accurate or reliable. Accordingly, the informational value of pro-forma returns is limited.

3. Non-USD index returns have been hedged into USD except for Emerging Market Equities. All returns are USD based unless otherwise stated.

4. Frontier annual cost savings are based on current asset allocation weights and published research on the total costs of active investing vs index investing across asset classes, with management fee savings based on fund of funds investing.

5. Each asset class is represented by a relevant market index. UK Equities are represented by the FTSE All Share Total Return Index. UK Bonds are represented by the Citigroup 10-year Gilt Benchmark Index. US Equities are represented by the Standard & Poor’s 500 Total Return Index. US Bonds are represented by the Citigroup 10-year Treasury Benchmark Index. European Equities are represented by the MSCI Europe ex UK Total Return Index. European Bonds arerepresented by the Citigroup 10-year European Benchmark Index. Commodities are represented by the S&P GSCI Index until April 2007 and the S&P GSCI Light Energy Index thereafter. Hedge Funds are represented by the HFR Fund of Funds index (minus 1% survivorship bias) and Managed Futures by the CISDM Asset Weighted Index (minus 1% survivorship bias). Cash returns are UK 1 Month Libor minus 1% per annum.

6. Fund performance persistence data is sourced from S&P Mutual Fund Performance Scorecard (2006) and covers those firms that were top quartile over five years to June 2001 (393 funds, comprising 269 Large cap US equity and 124 small cap US equity). Over the following five years, only 3 large cap funds and one small cap fund maintained a top quartile performance ranking.

7. The Frontier asset allocation process combines multiple inputs including reference to major US University endowments but also includes quantitative analysis and the inputs of the Frontier Asset Allocation Committee. Frontier does not expect similar returns to those of the endowments in the MAP Conservative Fund due to the lack of private equity exposure and a significantly lower volatility target than most endowments.

8. Endowment data is sourced from NACUBO and annual reports; calculations by Frontier Capital Management.

9. Fund data is sourced from Bloomberg and assumes the reinvestment of any dividends issued at the time of their issuance. Bloomberg data has not been checked or verified by Frontier Capital Management

DISCLAIMER

This document is issued for information purposes only by Frontier Capital Management LLP (“Frontier”) in respect of the Multi Asset Platform Fund Segregated Portfolio company (the ‘Fund’). Frontier is authorized and regulated by the Financial Services Authority (“FSA”).

The Fund is defined as an unregulated collective investment scheme and the promotion of such a scheme either within the UK or from the UK is restricted by the Financial Services and Markets Act 2000 (“FSMA”). Consequently, this document is only made available to professional clients and eligible counterparties as defined by the FSA Conduct of Business Sourcebook 4.12.1R and the statutory requirements under FSMA.

This document does not constitute an offer by Frontier to enter into any contractual/agreement nor is it a solicitation to buy or sell any investment. Nothing in this document should be deemed to constitute the provision of investment, financial or other professional advice in any way. Potential investors are directed to the read the Fund prospectus and should always consult with their professional advisors.

The contents of this document are based upon sources of information believed to be reliable. Frontier has taken reasonable care to ensure the information stated is factually true. However, Frontier make no representation, guarantee or warranty that it is wholly accurate and complete.

PAST PERFORMANCE IS NOT NECESSARILY A GUIDE TO FUTURE PERFORMANCE.

frontier capital management

Business

asset class portfolio0

asset class20

cash inflation

year annualised returns

reducedmulti asset portfolios

inflationasset class

strategic asset allocation

alternative asset classes